Correlation Between Piraeus Bank and Touchmark Bancshares
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and Touchmark Bancshares at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Piraeus Bank and Touchmark Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piraeus Bank SA and Touchmark Bancshares, you can compare the effects of market volatilities on Piraeus Bank and Touchmark Bancshares and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Piraeus Bank with a short position of Touchmark Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and Touchmark Bancshares.
Diversification Opportunities for Piraeus Bank and Touchmark Bancshares
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Piraeus and Touchmark is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and Touchmark Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchmark Bancshares and Piraeus Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Piraeus Bank SA are associated (or correlated) with Touchmark Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchmark Bancshares has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and Touchmark Bancshares go up and down completely randomly.
Pair Corralation between Piraeus Bank and Touchmark Bancshares
Assuming the 90 days horizon Piraeus Bank SA is expected to generate 2.24 times more return on investment than Touchmark Bancshares. However, Piraeus Bank is 2.24 times more volatile than Touchmark Bancshares. It trades about 0.01 of its potential returns per unit of risk. Touchmark Bancshares is currently generating about -0.09 per unit of risk. If you would invest 394.00 in Piraeus Bank SA on September 3, 2024 and sell it today you would lose (10.00) from holding Piraeus Bank SA or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Bank SA vs. Touchmark Bancshares
Performance |
| Timeline |
| Piraeus Bank SA |
| Touchmark Bancshares |
Piraeus Bank and Touchmark Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and Touchmark Bancshares
The main advantage of trading using opposite Piraeus Bank and Touchmark Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, Touchmark Bancshares can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Touchmark Bancshares will offset losses from the drop in Touchmark Bancshares' long position.| Piraeus Bank vs. Bankinter SA ADR | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. Eurobank Ergasias Services |
| Touchmark Bancshares vs. Harbor Bankshares | Touchmark Bancshares vs. Liberty Northwest Bancorp | Touchmark Bancshares vs. Pioneer Bankcorp | Touchmark Bancshares vs. Summit Bancshares |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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